Bond Market Showed Signs
Warning of AT&T's Troubles

Even before stock investors learned the full extent of AT&T 's problems in its consumer long-distance business, the bond market was sounding the alarm over AT&T and numerous other companies.

Between September last year and March, when AT&T shares hit their high of the year, yields on AT&T's 30-year bonds rose to 1.7 percentage points above those of safe Treasurys, from 1.3 points in the fall, according to securities...